What is the Full Form of IRN in GST?
The IRN Full Form in GST is Invoice Reference Number. Innovatively, the Indian GST created the Invoice Reference Number (IRN) for invoice preparation and verification. This distinct identity promotes transparency, efficiency, and tax compliance. Explore IRNs and discover all you need to. The GST-mandated e-invoicing system’s Invoice Registration Portal (IRP) creates an IRN, a 64-character alphanumeric identification. Every GST-registered taxpayer invoice has a digital fingerprint. GST ecosystem invoices are verified.
How are IRNs made?
Taxpayer fails to provide IRN. IRP produces it using a sophisticated algorithm that considers: GST supplier number. It might be an invoice, debit, or credit. Suppliers give distinct invoice numbers for internal tracking. This shows the invoice’s financial year. These information are given to the IRP, which produces IRN. This offers each taxpayer invoice in a financial year a unique identification, independent of recipient.
IRN generation for whom?
Companies must generate IRNs based on annual revenue. From October 1, 2020, businesses above Rs. 500 crore must generate IRNs. GST-registered businesses having a turnover exceeding Rs. 20 crore must furnish IRNs for all B2B invoices after reducing the threshold. Low-turnover companies may freely establish IRNs. Pre-population of Part A of the e-way bill simplifies intra-country goods travel.
IRN Generation: How?
Two primary IRN-generation processes exist. A free offline government software lets taxpayers bulk-input invoice data and produce IRNs. Business accounting software may use APIs to create IRNs for every invoice. Many GST Suvidha Providers (GSPs) provide this.